Cardano (ADA) has officially formed a death cross on its daily chart — a bearish technical pattern that signals potential prolonged downside. The move comes as ADA continues its downward trajectory, slipping another 1.2% in the past 24 hours, according to CoinMarketCap data.
Death Cross Signals Prolonged Weakness
TradingView data shows ADA peaking near $0.610 before a consistent series of red candles drove prices down to around $0.489. The death cross — when a short-term moving average crosses below a longer-term one — formed as the 9-period SMA fell below the 26-period SMA, confirming weakening momentum.
The SMAs currently sit at $0.5627 (9-period) and $0.5666 (26-period), illustrating the tightening spread that typically precedes extended consolidation or further decline. Historically, similar patterns in major cryptocurrencies have foreshadowed sustained bearish cycles.
This development aligns with Cardano’s broader trend, as ADA has been in decline since early September. A similar death cross on the hourly chart, where the 50-period MA crossed below the 200-period MA, had already hinted at short-term selling pressure.
Cardano Price Outlook
At the time of writing, ADA trades around $0.5731, down 1.2% daily, with monthly and yearly performance showing declines of 18.8% and 2.1%, respectively.
The breakdown below $0.66 confirms a loss of key support, with the next significant demand zone between $0.55 and $0.56. If ADA fails to hold this range, a deeper retracement could follow.
However, not all indicators are bearish. The Relative Strength Index (RSI) currently stands near 55, suggesting that ADA is not yet oversold — leaving room for potential downside before a rebound. A move above RSI 60 could signal the start of a short-term reversal, particularly if Bitcoin or broader crypto markets stabilize.
Whale Selling Adds Pressure
Adding to the bearish sentiment, Cardano whales have reportedly sold around 140 million ADA in just two weeks, signaling widespread profit-taking. This selling activity has contributed to persistent downward pressure, with larger holders exiting positions amid uncertainty.
This sell-off coincides with a broader market pullback, as Bitcoin (BTC) has dropped over 8% in the past month, dragging many altcoins down with it.
Will Cardano Recover?
While ADA’s death cross points to continued short-term weakness, long-term investors may watch for accumulation zones near $0.55 or signs of RSI recovery for potential buying opportunities. For now, technicals and whale behavior suggest a cautious outlook heading into late 2025.
